• |
Total Revenues: $571 million, a 9 percent increase year over year
|
• |
Product & License Revenues: $133 million, a 12 percent increase year over year
|
• |
Security Subscription Revenues: $210 million, a 14 percent increase year over year
|
• |
Deferred Revenues: $1,666 million, a 13 percent increase year over year
|
• |
GAAP Operating Income: $209 million, representing 37 percent of revenues
|
• |
Non-GAAP Operating Income: $249 million, representing 44 percent of revenues
|
• |
GAAP EPS: $1.36, a 1 percent decrease year over year
|
• |
Non-GAAP EPS: $1.64, a 2 percent increase year over year
|
• |
Total Revenues: $571 million compared to $526 million in the second quarter of 2021, a 9 percent increase year over year.
|
• |
GAAP Operating Income: $209 million compared to $222 million in the second quarter of 2021, representing 37 percent and 42 percent of revenues in the second quarter of 2022 and 2021, respectively.
|
• |
Non-GAAP Operating Income: $249 million compared to $257 million in the second quarter of 2021, representing 44 percent and 49 percent of revenues in the second quarter of 2022 and 2021, respectively.
|
• |
GAAP Taxes on Income: $45 million compared to $47 million in the second quarter of 2021.
|
• |
GAAP Net Income: $174 million compared to $186 million in the second quarter of 2021.
|
• |
Non-GAAP Net Income: $209 million compared to $217 million in the second quarter of 2021.
|
• |
GAAP Earnings Per Diluted Share: $1.36 compared to $1.38 in the second quarter of 2021, a 1 percent decrease year over year.
|
• |
Non-GAAP Earnings Per Diluted Share: $1.64 compared to $1.61 in the second quarter of 2021, a 2 percent increase year over year.
|
• |
Deferred Revenues: As of June 30, 2022, deferred revenues were $1,666 million compared to $1,472 million as of June 30, 2021, a 13 percent increase year over year.
|
• |
Cash Balances, Marketable Securities and Short-Term Deposits: $3,676 million as of June 30, 2022, compared to $4,002 million as of June 30, 2021.
|
• |
Cash Flow: Cash flow from operations of $212 million compared to $264 million in the second quarter of 2021. The second quarter of 2022 includes $47 million of expenses related to our currency hedging transactions and $30 million of tax expenses compared to $6 million of income related to our currency hedging transactions and $25 million of tax expenses in the second quarter of 2021.
|
• |
Share Repurchase Program: During the second quarter of 2022, the company repurchased approximately 2.6 million shares at a total cost of approximately $325 million.
|
Check Point will host a conference call with the investment community on August 1, 2022, at 8:30 AM ET/5:30 AM PT. To listen to the live video cast or replay, please visit the website: www.checkpoint.com/ir.
• |
KeyBanc Technology Leadership Forum August 7-9, 2022, Vail, CO - Fireside Chat & 1x1's |
• |
Oppenheimer 25th Annual Virtual Technology, Internet & Communications Conference August 10, 2022 - Virtual 1x1's |
• |
Deutsche Bank 2022 Technology Conference August 30 - September 1, 2022, Las Vegas, NV - Fireside Chat & 1x1's |
• |
Citi 2022 Global Technology Virtual Conference September 6-8, 2022, New York, NY - 1x1's |
• |
Piper Sandler 2022 Global Technology Conference September 12-14, 2022, Nashville, TN - 1x1's |
• |
Goldman Sachs 2022 Communicopia + Technology Conference September 15, 2022, San Francisco, CA - 1x1's |
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Check Point uses non-GAAP measures of operating income, net income, and earnings per diluted share, which are adjustments from results based on GAAP to exclude, as applicable, stock-based compensation expenses, amortization of intangible assets and acquisition related expenses and the related tax affects. Check Point's management believes the non-GAAP financial information provided in this release is useful to investors' understanding and assessment of Check Point's ongoing core operations and prospects for the future. Historically, Check Point has also publicly presented these supplemental non-GAAP financial measures to assist the investment community to see the Company "through the eyes of management," and thereby enhance understanding of its operating performance. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release to the most directly comparable GAAP financial measures is included with the financial statements contained in this press release. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and as such has determined that it is important to provide this information to investors.
CONSOLIDATED STATEMENT OF INCOME
Three Months Ended
|
Six Months Ended
| |||||||||||||||
June 30,
|
June 30,
| |||||||||||||||
2022
|
2021
|
2022
|
2021
| |||||||||||||
Revenues:
| ||||||||||||||||
Products and licenses
|
$
|
133.2
|
$
|
119.1
|
$
|
249.1
|
$
|
228.4
| ||||||||
Security subscriptions
|
209.9
|
183.7
|
411.5
|
361.1
| ||||||||||||
Total revenues from products and security subscriptions
|
343.1
|
302.8
|
660.6
|
589.5
| ||||||||||||
Software updates and maintenance
|
228.0
|
223.3
|
453.2
|
444.2
| ||||||||||||
Total revenues
|
571.1
|
526.1
|
1,113.8
|
1,033.7
| ||||||||||||
Operating expenses:
| ||||||||||||||||
Cost of products and licenses
|
36.7
|
23.2
|
68.1
|
44.8
| ||||||||||||
Cost of security subscriptions
|
9.5
|
8.7
|
19.5
|
16.7
| ||||||||||||
Total cost of products and security subscriptions
|
46.2
|
31.9
|
87.6
|
61.5
| ||||||||||||
Cost of Software updates and
maintenance
|
25.7
|
25.6
|
51.2
|
50.9
| ||||||||||||
Amortization of technology
|
2.9
|
1.7
|
6.1
|
3.4
| ||||||||||||
Total cost of revenues
|
74.8
|
59.2
|
144.9
|
115.8
| ||||||||||||
Research and development
|
86.3
|
67.5
|
172.8
|
135.9
| ||||||||||||
Selling and marketing
|
170.6
|
148.9
|
329.2
|
288.9
| ||||||||||||
General and administrative
|
30.6
|
28.2
|
57.9
|
56.0
| ||||||||||||
Total operating expenses
|
362.3
|
303.8
|
704.8
|
596.6
| ||||||||||||
Operating income
|
208.8
|
222.3
|
409.0
|
437.1
| ||||||||||||
Financial income, net
|
9.7
|
10.4
|
16.8
|
23.0
| ||||||||||||
Income before taxes on income
|
218.5
|
232.7
|
425.8
|
460.1
| ||||||||||||
Taxes on income
|
44.9
|
46.7
|
82.8
|
91.2
| ||||||||||||
Net income
|
$
|
173.6
|
$
|
186.0
|
$
|
343.0
|
$
|
368.9
| ||||||||
Basic earnings per share
|
$
|
1.37
|
$
|
1.39
|
$
|
2.69
|
$
|
2.74
| ||||||||
Number of shares used in computing basic earnings per share
|
126.5
|
133.7
|
127.4
|
134.8
| ||||||||||||
Diluted earnings per share
|
$
|
1.36
|
$
|
1.38
|
$
|
2.66
|
$
|
2.71
| ||||||||
Number of shares used in computing diluted earnings per share
|
127.7
|
134.8
|
128.8
|
136.1
|
SELECTED FINANCIAL METRICS
(Unaudited, in millions, except per share amounts)
Three Months Ended
|
Six Months Ended
| |||||||||||||||
June 30,
|
June 30,
| |||||||||||||||
2022
|
2021
|
2022
|
2021
| |||||||||||||
Revenues
|
$
|
571.1
|
$
|
526.1
|
$
|
1,113.8
|
$
|
1,033.7
| ||||||||
Non-GAAP operating income
|
248.7
|
257.1
|
487.3
|
503.4
| ||||||||||||
Non-GAAP net income
|
209.3
|
217.0
|
412.9
|
428.2
| ||||||||||||
Diluted Non-GAAP Earnings per share
|
$
|
1.64
|
$
|
1.61
|
$
|
3.21
|
$
|
3.15
| ||||||||
Number of shares used in computing diluted Non-GAAP earnings per share
|
127.7
|
134.8
|
128.8
|
136.1
|
Three Months Ended
|
Six Months Ended
| |||||||||||||||
June 30,
|
June 30,
| |||||||||||||||
2022
|
2021
|
2022
|
2021
| |||||||||||||
GAAP operating income
|
$
|
208.8
|
$
|
222.3
|
$
|
409.0
|
$
|
437.1
| ||||||||
Stock-based compensation (1)
|
33.7
|
29.9
|
66.1
|
56.5
| ||||||||||||
Amortization of intangible assets and acquisition related expenses (2)
|
6.2
|
4.9
|
12.2
|
9.8
| ||||||||||||
Non-GAAP operating income
|
$
|
248.7
|
$
|
257.1
|
$
|
487.3
|
$
|
503.4
| ||||||||
GAAP net income
|
$
|
173.6
|
$
|
186.0
|
$
|
343.0
|
$
|
368.9
| ||||||||
Stock-based compensation (1)
|
33.7
|
29.9
|
66.1
|
56.5
| ||||||||||||
Amortization of intangible assets and acquisition related expenses (2)
|
6.2
|
4.9
|
12.2
|
9.8
| ||||||||||||
Taxes on the above items (3)
|
(4.2
|
)
|
(3.8
|
)
|
(8.4
|
)
|
(7.0
|
)
| ||||||||
Non-GAAP net income
|
$
|
209.3
|
$
|
217.0
|
$
|
412.9
|
$
|
428.2
| ||||||||
Diluted GAAP Earnings per share
|
$
|
1.36
|
$
|
1.38
|
$
|
2.66
|
$
|
2.71
| ||||||||
Stock-based compensation (1)
|
0.26
|
0.22
|
0.51
|
0.42
| ||||||||||||
Amortization of intangible assets and acquisition related expenses (2)
|
0.05
|
0.04
|
0.10
|
0.07
| ||||||||||||
Taxes on the above items (3)
|
(0.03
|
)
|
(0.03
|
)
|
(0.06
|
)
|
(0.05
|
)
| ||||||||
Diluted Non-GAAP Earnings per share
|
$
|
1.64
|
$
|
1.61
|
$
|
3.21
|
$
|
3.15
| ||||||||
Number of shares used in computing diluted Non-GAAP earnings per share
|
127.7
|
134.8
|
128.8
|
136.1
| ||||||||||||
(1) Stock-based compensation:
| ||||||||||||||||
Cost of products and licenses
|
$
|
0.1
|
$
|
0.1
|
$
|
0.2
|
$
|
0.2
| ||||||||
Cost of software updates and maintenance
|
1.3
|
1.1
|
2.3
|
2.0
| ||||||||||||
Research and development
|
10.3
|
7.2
|
20.8
|
13.7
| ||||||||||||
Selling and marketing
|
10.3
|
10.5
|
21.4
|
18.8
| ||||||||||||
General and administrative
|
11.7
|
11.0
|
21.4
|
21.8
| ||||||||||||
33.7
|
29.9
|
66.1
|
56.5
| |||||||||||||
(2) Amortization of intangible assets and acquisition related expenses:
| ||||||||||||||||
Amortization of technology-cost of revenues
|
2.9
|
1.7
|
6.1
|
3.4
| ||||||||||||
Research and development
|
2.2
|
1.3
|
4.2
|
2.6
| ||||||||||||
Selling and marketing
|
1.1
|
1.9
|
1.9
|
3.8
| ||||||||||||
6.2
|
4.9
|
12.2
|
9.8
| |||||||||||||
(3) Taxes on the above items
|
(4.2
|
)
|
(3.8
|
)
|
(8.4
|
)
|
(7.0
|
)
| ||||||||
Total, net
|
$
|
35.7
|
$
|
31.0
|
$
|
69.9
|
$
|
59.3
|
June 30,
|
December 31,
| |||||||
2022
|
2021
| |||||||
Current assets:
| ||||||||
Cash and cash equivalents
|
$
|
242.8
|
$
|
271.9
| ||||
Marketable securities and short-term deposits
|
1,428.8
|
1,421.8
| ||||||
Trade receivables, net
|
344.0
|
597.8
| ||||||
Prepaid expenses and other current assets
|
55.0
|
46.4
| ||||||
Total current assets
|
2,070.6
|
2,337.9
| ||||||
Long-term assets:
| ||||||||
Marketable securities
|
2,004.5
|
2,089.7
| ||||||
Property and equipment, net
|
84.3
|
83.4
| ||||||
Deferred tax asset, net
|
70.2
|
51.7
| ||||||
Goodwill and other intangible assets, net
|
1,302.1
|
1,257.2
| ||||||
Other assets
|
81.4
|
80.3
| ||||||
Total long-term assets
|
3,542.5
|
3,562.3
| ||||||
Total assets
|
$
|
5,613.1
|
$
|
5,900.2
|
Current liabilities:
| ||||||||
Deferred revenues
|
$
|
1,210.7
|
$
|
1,257.4
| ||||
Trade payables and other accrued liabilities
|
457.3
|
454.7
| ||||||
Total current liabilities
|
1,668.0
|
1,712.1
| ||||||
Long-term liabilities:
| ||||||||
Long-term deferred revenues
|
455.2
|
449.7
| ||||||
Income tax accrual
|
440.2
|
454.9
| ||||||
Other long-term liabilities
|
25.2
|
26.4
| ||||||
920.6
|
931.0
| |||||||
Total liabilities
|
2,588.6
|
2,643.1
| ||||||
Shareholders' equity:
| ||||||||
Share capital
|
0.8
|
0.8
| ||||||
Additional paid-in capital
|
2,405.6
|
2,276.7
| ||||||
Treasury shares at cost
|
(11,168.0
|
)
|
(10,550.7
|
)
| ||||
Accumulated other comprehensive gain
|
(87.8
|
)
|
(0.6
|
)
| ||||
Retained earnings
|
11,873.9
|
11,530.9
| ||||||
Total shareholders' equity
|
3,024.5
|
3,257.1
| ||||||
Total liabilities and shareholders' equity
|
$
|
5,613.1
|
$
|
5,900.2
| ||||
Total cash and cash equivalents, marketable securities and short-term deposits
|
$
|
3,676.1
|
$
|
3,783.4
|
Three Months Ended
|
Six Months Ended
| |||||||||||||||
June 30,
|
June 30,
| |||||||||||||||
2022
|
2021
|
2022
|
2021
| |||||||||||||
Cash flow from operating activities:
| ||||||||||||||||
Net income
|
$
|
173.6
|
$
|
186.0
|
$
|
343.0
|
$
|
368.9
| ||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
| ||||||||||||||||
Depreciation of property and equipment
|
5.5
|
5.5
|
10.5
|
10.2
| ||||||||||||
Amortization of intangible assets
|
3.4
|
2.1
|
6.7
|
4.2
| ||||||||||||
Stock-based compensation
|
33.7
|
29.9
|
66.1
|
56.5
| ||||||||||||
Realized gain on marketable securities
|
-
|
(0.2
|
)
|
-
|
(1.5
|
)
| ||||||||||
Decrease (increase) in trade and other receivables, net
|
(6.5
|
)
|
(24.9
|
)
|
246.9
|
175.3
| ||||||||||
Increase (decrease) in deferred revenues, trade payables and other accrued liabilities
|
1.0
|
63.3
|
(65.8
|
)
|
24.0
| |||||||||||
Deferred income taxes, net
|
1.0
|
1.9
|
2.3
|
0.5
| ||||||||||||
Net cash provided by operating activities
|
211.7
|
263.6
|
609.7
|
638.1
| ||||||||||||
Cash flow from investing activities:
| ||||||||||||||||
Payment in conjunction with acquisitions, net of acquired cash
|
-
|
-
|
(48.3
|
)
|
-
| |||||||||||
Investment in property and equipment
|
(6.7
|
)
|
(3.3
|
)
|
(11.4
|
)
|
(7.1
|
)
| ||||||||
Net cash used in investing activities
|
(6.7
|
)
|
(3.3
|
)
|
(59.7
|
)
|
(7.1
|
)
| ||||||||
Cash flow from financing activities:
| ||||||||||||||||
Proceeds from issuance of shares upon exercise of options
|
28.5
|
14.4
|
95.4
|
47.5
| ||||||||||||
Purchase of treasury shares
|
(325.0
|
)
|
(324.7
|
)
|
(650.0
|
)
|
(649.6
|
)
| ||||||||
Payments related to shares withheld for taxes
|
(5.8
|
)
|
(4.9
|
)
|
(6.5
|
)
|
(5.8
|
)
| ||||||||
Net cash used in financing activities
|
(302.3
|
)
|
(315.2
|
)
|
(561.1
|
)
|
(607.9
|
)
| ||||||||
Unrealized loss on marketable securities, net
|
(26.9
|
)
|
(6.0
|
)
|
(96.2
|
)
|
(20.7
|
)
| ||||||||
Increase (decrease) in cash and cash equivalents, marketable securities and short term deposits
|
(124.2
|
)
|
(60.9
|
)
|
(107.3
|
)
|
2.4
| |||||||||
Cash and cash equivalents, marketable securities and short term deposits at the beginning of the period
|
3,800.3
|
4,062.9
|
3,783.4
|
3,999.6
| ||||||||||||
Cash and cash equivalents, marketable securities and short term deposits at the end of the period
|
$
|
3,676.1
|
$
|
4,002.0
|
$
|
3,676.1
|
$
|
4,002.0
|
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Disclaimer
Check Point Software Technologies Ltd. published this content on 01 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 August 2022 13:44:13 UTC.